AutoTradeCenter Canada Ltd.
TSX VENTURE : ATO

AutoTradeCenter Canada Ltd.

October 24, 2005 13:25 ET

AutoTradeCenter Canada Ltd. Announces that DaimlerChrysler Financial Services Canada Inc. has Suspended the Scheduled November Launch of the Open Auction Initiative

LETHBRIDGE, ALBERTA--(CCNMatthews - Oct. 24, 2005) -

(Not for dissemination in the United States of America)

AutoTradeCenter Canada Ltd. (TSX VENTURE:ATO) (the "Company", "ATC Canada") regrets to announce the decision by DaimlerChrysler Financial Services Canada Inc. to postpone the launch of exposing Chrysler vehicles on the AutoTradeCenter Canada open auction. DaimlerChrysler Financial Services Canada had planned to move vehicles from the closed auction platform that ATC Canada currently supports, to ATC Canada's open auction. DaimlerChrysler representatives have said that the open auction initiative has been moved to a lower priority than other initiatives that are currently being implemented. DaimlerChrysler representatives anticipate that it will take six months before a decision is made on when to reconsider this initiative.

The projections that AutoTradeCenter Canada produced to determine when the company would become cash flow positive factored in the revenue that would have been generated from DaimlerChrysler Financial Services Canada Inc. moving their vehicles to the open auction platform. The postponement of this initiative and loss of resulting revenue places AutoTradeCenter Canada in a cash shortfall position, which will result in ATC Canada having to go back to the market to raise the additional operating capital to sustain its operations for the next 12 to 24 months.

The management team and customers of AutoTradeCenter Canada believe in the product and service offering that has been developed, implemented and deployed but there is also a realization that the adoption by the marketplace is going to take longer than originally projected.

About AutoTradeCenter Canada

ATC Canada offers a combination of services and technology products for Canadian companies engaged in wholesale vehicle remarketing, including its on-line vehicle auction platform and the cDemo Inspection Intelligence technology. ATC Canada's inspection technology standardizes the vehicle assessment data collection process and enables the management of 'virtual' vehicles' on-line.

Statements in this release which describe the Company's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. The Company may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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